Valuetainment - June 26, 2026


“Starter Home is Dead” - Trump’s Housing Bill Limits BlackRock Type Institutions

Hosted by
Patrick Bet-David
Mentioned
Rick Scott Rand Paul Mike Lee Zizek Elizabeth Warren Tim Scott Northridge Scorebet Palmdale Burbank Massey Donald Snyder Trump Jeff
“Pakistani Grooming Gangs” - Rupert Lowe Exposes UK Cover-up ＂No Longer Republican＂ – Tucker Carlson Breaks With the Republican Party

Episode Stats


Length

17 minutes

Words per minute

192.79

Word count

3,364

Sentence count

260

Harmful content

Misogyny

1

sentences flagged

Toxicity

4

sentences flagged

Hate speech

3

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

On today's show, we discuss the House passing a landmark legislation that could help solve the housing affordability crisis. We also discuss the impact this legislation could have on the economy and the future of the housing market. And of course, we have our Hot Takes.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 Bet mode activated.
00:00:01.820 The Scorebet app here with trusted stats and real-time sports news.
00:00:05.220 Yeah, hey, who should I take in the Boston game?
00:00:07.280 Well, statistically speaking.
00:00:08.840 Nah, no more statistically speaking. I want hot takes. I want knee-jerk reactions. 0.99
00:00:13.280 That's not really what I do.
00:00:15.440 Is that because you don't have any knees? Or...
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00:00:30.000 The big passing that the bill that they talked about yesterday, House approves major housing affordability bill, sending bipartisan measure to Trump.
00:00:38.620 This is important for a lot of people that are sitting there saying, how can I control housing?
00:00:42.800 They're trying to do that in a different way. But let me read it to you.
00:00:46.260 The House on Tuesday passed a landmark housing affordability bill marking a raid bipartisan legislative accomplishment as lawmakers seek to address rising costs ahead of midterm election.
00:00:56.620 Tim Scott, Republican, Elizabeth Warren, Democrat, maybe progressive socialist,
00:01:02.280 House GOP leaders fast-tracked the legislation after the Senate approved it
00:01:06.040 with overwhelming support to pass the House in a 358 to 32 vote.
00:01:12.780 And now heads to President Trump to sign.
00:01:14.480 By the way, some of the House that didn't vote against it, that voted against it,
00:01:18.640 I think one is Massey, one is Donald.
00:01:20.440 There's a few people that are not for it.
00:01:22.160 They're like, I don't know if I like this.
00:01:23.360 This questions free market capitalism.
00:01:25.640 Leave it alone.
00:01:26.260 And I think even on the Senate side, when they went through it,
00:01:30.300 there was a handful of people.
00:01:32.080 Rick Scott is one.
00:01:33.480 Who else am I missing on the Senate side?
00:01:35.120 Rick Scott was one.
00:01:36.680 Mike Lee.
00:01:37.040 Mike Lee is another one.
00:01:38.400 There was a couple other big names.
00:01:40.160 Oh, Rand Paul was one of them.
00:01:41.420 Rand Paul was one of them as well.
00:01:42.900 So these are some popular names that are saying, I don't know about it,
00:01:45.440 but it was a majority that went through.
00:01:47.800 And so I'll pause it right here.
00:01:49.260 And the main thing with this, if I can share this side before I come to you guys,
00:01:53.400 Tom, Snyder, and Elon, is the following.
00:01:57.640 So this is the vision, home for people, not for corporation.
00:02:02.580 This provision legally bars large institution corporate investors
00:02:05.720 from expanding their portfolios to own more than 350 single-family homes nationwide.
00:02:11.660 Now, you may say, man, that's a lot.
00:02:14.320 That's not a lot.
00:02:16.600 When you're doing billions on top of billions, 350 is nothing.
00:02:20.000 Some of these guys got tens of thousands that they're dealing with.
00:02:24.820 Lawmakers designed this cap to explicitly curb corporate competition in suburban markets.
00:02:30.740 Wild housing advocates argue has artificially inflated home values and squeezed that middle class families during the ongoing cost of living crisis.
00:02:40.200 California, New York has the lowest percentage of homeownership.
00:02:43.960 I think it's at 47, 48 percent.
00:02:45.940 California, the average home price, if I'm not mistaken, is $906,000.
00:02:49.820 Are you kidding me?
00:02:50.360 Like, I'm getting out of college.
00:02:51.880 I'm getting married, having kids first house.
00:02:53.360 I want to buy a million-dollar home.
00:02:54.880 How the hell am I going to do it on an $80,000 salary, $120,000 salary?
00:02:58.680 So, Jeff, how important is this bill here?
00:03:00.680 It's good because they're finally recognizing that this is a huge problem.
00:03:04.180 I think that people have realized it for quite some time.
00:03:07.340 But I'm not sure that it actually accomplishes what they want it to accomplish.
00:03:10.580 Because what really happened here, this is the legacy of the 2008 crisis,
00:03:14.380 is that after 2008, banks pulled back,
00:03:16.940 and they didn't want to give mortgages to regular folks for a lot of really good reasons
00:03:21.220 because the ninja loans and everything that happened in subprime and middle 2000s,
00:03:25.860 they pulled back, but they never came back.
00:03:28.160 So in the 2010s and it got even worse in the early 2020s,
00:03:32.400 the only people who could get financing were big Wall Street firms.
00:03:35.740 So if you have no lending and no liquidity for regular folks to be able to buy houses,
00:03:41.460 by the way, they didn't have jobs either, so they weren't going to qualify for a mortgage,
00:03:44.500 and the only people in the marketplace are large Wall Street firms,
00:03:48.060 BlackRock did what BlackRock's going to do.
00:03:49.960 They essentially bought up huge chunks.
00:03:51.680 You talk 350 limit, they're buying 10,000 houses at a time in single transactions
00:03:56.680 because they were the only people in the marketplace.
00:03:59.360 Money flowed to Wall Street rather than Main Street.
00:04:02.100 And because it didn't flow to Main Street,
00:04:03.520 Main Street was essentially increasingly priced out of the market
00:04:05.980 to the point we got to the 2020s where a flood of money went on Wall Street.
00:04:09.700 Wall Street went crazy buying up properties in 21 and 22
00:04:12.660 and to a certain extent 23.
00:04:14.500 which, of course, housing prices absolutely soared ahead,
00:04:18.740 pricing people, regular folks, out of the market even further.
00:04:22.020 So in one sense, it's recognizing that there's an imbalance here.
00:04:25.580 Wall Street has money, has the ability to buy,
00:04:28.040 and therefore, to some people, make them a rent slave for the rest of their lives,
00:04:31.540 and they have no hope of actually getting into a home.
00:04:33.160 Tom.
00:04:34.020 So part of this bill that I wasn't sure about was the limit on corporate purchase
00:04:41.620 Because whenever you give the government a knob, they kind of turn it, and they'll always turn it the wrong way.
00:04:46.460 So I think that's a well-intended thing to say, hey, the supply of housing is being constrained because they can buy so many houses at once.
00:04:53.620 And then when they price the rent on those houses, they're able to price the rent higher because they themselves, through the purchase of those houses, have now constricted who controls the supply.
00:05:04.220 So I agree that that hurts the little guy.
00:05:06.760 But why were they able to do it?
00:05:09.120 Where's the rest of it?
00:05:09.940 The rest of the bill has got some things I think are going in the right direction, but we really need the states to do it, such as manufactured homes relief.
00:05:18.240 There are some standards for manufactured homes that they've changed to match the market.
00:05:22.420 And then financing on – they want the FHA to increase limits on multifamily to match the market.
00:05:29.220 Well, that's the purpose of FHA.
00:05:31.020 And so if the FHA, you know, sits there and just says, well, you know, the average American is 141 pounds, and that's the average from 1930, that's not the average today.
00:05:42.140 So over time, you know what I mean, Pat, that average goes up.
00:05:44.780 Same thing happened to the FHA with the limits on mortgages.
00:05:47.680 Hey, well, the limit that we will back and everything is here.
00:05:49.980 So moving those limits up are good.
00:05:51.460 What I also want to see is keep the inspection requirements on the builders so that Toll Brothers and Lanier can't build a bunch of really cheap, bad houses.
00:06:02.660 Keep the inspection requirements on the builders, but lower the permitting time so that they can find tracts of land and they can actually build.
00:06:10.980 That will build the supply and be able to do it.
00:06:13.460 But additionally, where you have like downtown Dallas that we saw or areas where warehouses went down and townhouses and condos went up, now people could afford a townhouse or a condo in downtown Dallas and actually work there as a 30-year-old person.
00:06:28.880 So I think more needs to be happening on the supply, but I think the FHA part of this, inspection efficiencies, what they did for manufactured homes, is good.
00:06:40.080 But I don't want the government to have a long-term knob over who can buy what.
00:06:44.840 Yeah, I agree with Tom on that.
00:06:45.700 I agree with you most importantly on the permitting delays because that destroys the supply.
00:06:51.700 And, you know, anecdotally from my own time trying to build homes and be in the real estate market,
00:06:56.000 it's a massive setback when you have to sit there and wait months and months.
00:06:58.900 It increases costs, and then homes become more expensive based on that.
00:07:02.240 I did read that only a very small percentage of rental homes are owned by these big investment firms.
00:07:07.600 It's something like 3% of the rental market.
00:07:09.440 from what i read online so i think that again the big problem here is coming back to making it
00:07:13.800 possible for people to get the homes through these loans making it more affordable driving down costs
00:07:18.300 but that all comes from reducing regulation in my view so um i think that's that's the big disagrees
00:07:24.160 with this that's what i want to know what is the disagreement of what just purely get out the way
00:07:29.380 let the free market do whatever they want to do is that is that the argument the thing is this is
00:07:34.560 massey this is byron donalds this is rick scott this is mike lee this is this is ron paul these
00:07:39.760 are people that have followings that are saying i don't like this idea ted cruz that voted for it
00:07:44.200 wasn't happy with bill all right he said he falls short of bill this this bill would really test how
00:07:50.500 much you love the the free market you know what i mean because the thing is nobody wants more
00:07:54.680 regulations all right like in if you if you absolutely believe in the free market you think
00:07:58.420 anyone should be able to buy anything including big corporations you know what i mean and then
00:08:03.340 again, this is a crisis, Pat. We read the news this week. One in three people under 35 still
00:08:10.720 live with their parents. That's great. It is crazy. We have a shortage of around two to three 0.95
00:08:15.580 million homes in America. The median age of a first-time homebuyer, according to NAR, is 40.
00:08:21.820 40. That's absolutely ridiculous. That tells you that Americans cannot afford a home. Yeah, I saw 0.94
00:08:26.160 that. And by the way, when you go a little bit deeper with this, this is even a bigger concern.
00:08:30.240 My worry is, do I want, like right now, if you look at the average home size,
00:08:34.720 I'm going 1970 to today.
00:08:36.520 The average home size in America in 1970 was 1,600 square feet.
00:08:41.080 It went to 2,600 square feet.
00:08:43.440 Why do we need that additional 1,000 square feet?
00:08:45.520 We don't.
00:08:46.460 So starter homes, a starter home, I'm going to incentivize,
00:08:49.400 like if these BlackRock guys come in and they want to put money
00:08:52.420 into building a smaller 1,500 square for condos, for young folks, guess what?
00:08:56.260 Go, go into that space.
00:08:57.340 I think that part needs to flow.
00:08:58.700 I think there needs to be an incentive for the people to build three twos instead of four threes, maybe even two twos, you know, that they're building.
00:09:05.780 And then the other part when you look at this, which is a concern, is the following.
00:09:08.480 In 1970, do you know the average income, average median household income was $9,900?
00:09:15.380 Let me give you the exact number so you have it.
00:09:17.620 The average, the median household income was $9,900.
00:09:23.160 The median home price was $23,000, that's 2.3 times.
00:09:26.660 Then in 80, we went three times.
00:09:29.260 Then in 90s, we went four times.
00:09:32.100 Then today, in 2020, we were five times.
00:09:35.360 So you make $80,000 to buy something, it's $400,000.
00:09:40.380 $80,000, yeah, $400,000, five times.
00:09:43.520 Do you know in some markets like Miami, L.A., New York,
00:09:46.300 that number is 7 to 13 times your salary.
00:09:49.480 How in the hell are they supposed to do that? 1.00
00:09:52.500 So if the incentive opens up and you're building something I can afford, I'd like to see the Black Rocks go into that. 0.54
00:10:01.020 But if you're going and picking up everything and then you're making rent control to these five corporations that now own it almost, it becomes like a oligopoly.
00:10:08.620 Oligopoly, you know, by five, like centralized.
00:10:11.540 That's a challenge for the average individual.
00:10:13.400 Here's the process here.
00:10:14.520 You hit the nail on the head here, Pat.
00:10:16.400 What you said was that where are the starter homes?
00:10:18.680 The starter homes are marketed to people who can't afford.
00:10:21.120 They can't qualify for a mortgage.
00:10:22.300 So the starter business has completely disappeared.
00:10:25.120 BlackRock has no financial incentive in getting in the starter business.
00:10:27.280 Let's make that.
00:10:27.900 Let's give them the incentive.
00:10:28.900 So what happens is what normally happened back in 1970 or 1980 or 1990 before the housing crisis is that you started with a starter home.
00:10:36.140 You built up equity, and then you moved to the 3-2 and the 4-3.
00:10:38.960 Yeah.
00:10:39.300 But if you don't have the ability to get a mortgage to get to the starter home, you're stuck renting for the rest of your life.
00:10:44.780 Tom, how old were you the first time you bought a house?
00:10:46.820 I paid two.
00:10:48.760 I know exactly.
00:10:49.560 I was 20, I was 24.
00:10:53.680 24 years old.
00:10:54.800 By the way, that's normal.
00:10:56.700 It was normal.
00:10:58.480 But I'll tell you what year it was.
00:11:00.380 You know, it was 1986, you know, because I was born in 62.
00:11:06.260 And so that's how I was 24.
00:11:08.120 I had just gotten out of college.
00:11:10.120 I paid $205,000 for a home on Lopez Street just off of Topanga Canyon,
00:11:16.120 south of the Boulevard, and Woodland Hills.
00:11:17.580 You know that area, Pat, right?
00:11:18.660 Of course I do.
00:11:19.080 And by the way, guess how big the house was?
00:11:21.340 1,400 square feet.
00:11:22.200 Exactly right.
00:11:23.480 Because that's when that neighborhood was all built.
00:11:26.560 And the people had retired.
00:11:28.340 I had to put windows in it, so I had to do some of that.
00:11:31.280 And that's what I did.
00:11:32.600 But that's 1986.
00:11:33.860 Okay, so do me a favor.
00:11:35.020 Can you ask the following question in chat?
00:11:37.500 Ask, what is the average age of first-time homeowners from 1970, 1980, 1990 to today?
00:11:44.700 Watch this number here, okay, until today.
00:11:46.760 It tells me, I just ran it, 1981, the average age of first-time homeowner was 29.
00:11:54.240 In 1991, for whatever reason, it dropped down to 28.
00:11:58.660 Then 32 in 2030, in 2010, 33, 35, 38.
00:12:04.560 You know what that number is today?
00:12:05.620 He just said it.
00:12:06.380 40.
00:12:06.560 40 years old.
00:12:07.360 Yeah, and eventually it'll be no one.
00:12:09.320 Eventually it's just going to be a rental market.
00:12:11.060 That's not good.
00:12:12.300 You can't have that.
00:12:13.120 No.
00:12:13.280 You cannot have.
00:12:13.980 That's a very big problem.
00:12:14.900 I know.
00:12:15.300 Well, we have to break a code.
00:12:16.440 And here's the code. We all celebrate when mom and dad retire and the equity of their house has gone up.
00:12:23.300 They sell that. They put that in the bank. They have that along with maybe some small pension and our Social Security.
00:12:29.300 And now we celebrate that mom and dad retired and won't be a burden on the rest of the family because they were responsible.
00:12:34.640 So you celebrate that on one hand. But now what happens to the house?
00:12:37.860 That house is now unaffordable for the next generation to do the next trick.
00:12:42.520 That's, to me, that's the issue.
00:12:44.980 If housing is a long-term investable asset, which it is because it's real estate and it's scarce, then you have to do one of two things.
00:12:52.740 Keep building rings of the wheel farther and farther from the center of the old city and move businesses further and further from the center of the old city so the jobs are out there.
00:13:01.920 So I don't have to live in Lancaster, Palmdale and drive an hour and a half to Burbank because I work in the motion picture.
00:13:09.740 And people do that today.
00:13:10.740 We know people in L.A., right?
00:13:12.780 They live in Palmdale.
00:13:14.020 They drive all the way out to Burbank.
00:13:15.840 Palmdale blew up the last 40 years for that specific reason.
00:13:18.280 You could buy a place in Palmdale, a 3-2 for $40,000 30 years ago.
00:13:22.540 And now, what is the average home price in Palmdale?
00:13:25.100 Can you pull up what is the average home price in Palmdale, California?
00:13:28.540 If you pull up, just what is the average home price in Palmdale, California today?
00:13:31.660 Again, you could buy 3-2 30 years ago for $40,000 in Palmdale.
00:13:35.460 It was a desert.
00:13:36.800 Palmdale, I think, had a military base.
00:13:38.580 Edwards Air Force Base.
00:13:39.600 Edwards Air Force Base.
00:13:40.080 The skunk works.
00:13:41.220 Yeah. 0.99
00:13:41.820 And so now, if you look at Palmdale, holy shit. 0.99
00:13:47.860 Look at this. 0.99
00:13:49.300 Look at this.
00:13:49.940 The average median home was $70,000 to $80,000.
00:13:53.460 Low end, you could buy a place for $40,000.
00:13:55.320 It's $520,000 now.
00:13:56.480 So you can't even afford to buy a house in Palmdale.
00:13:58.700 Pat, let's do this.
00:13:59.440 Let's stay on this and do it.
00:14:01.040 Let's stay on it and do it.
00:14:01.960 Do the same thing for Sherman Oaks and Encino or Northridge.
00:14:07.500 Get it?
00:14:08.060 That's where people used to live.
00:14:09.320 Do the same question except run Encino.
00:14:11.900 Right.
00:14:12.180 And that's where people would live in Encino and go work in Burbank.
00:14:15.040 Their children now are out here in Palmdale driving all the way into Burbank and Glendale where there's a lot of jobs, especially in media and entertainment.
00:14:24.820 Now look.
00:14:26.340 That's what happened to mom and dad's house.
00:14:28.820 And the kids are living for a house one-third that, 500, out in Palmdale.
00:14:33.740 Yeah, and it'll just keep spreading further and further out.
00:14:35.760 Well, they did.
00:14:36.680 Until they actually live in Las Vegas.
00:14:38.140 Then you move to all these other cities.
00:14:39.920 Now, all of a sudden, you're buying a house for people that know California on Zizek's exit.
00:14:44.120 If you don't know Zizek's exit, if you know Zizek's exit, you partied in Vegas a little too much.
00:14:49.980 It's a very small elite group of people know that exit.
00:14:52.680 But we can transition to the next story on what we have.
00:14:55.060 The whole reality here is we got to find a way for people to have incentive to build smaller homes.
00:15:00.960 Hopefully we will.
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